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    Thread: Which is the most important for a trader - stop loss or take profit ?

    1. #1
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      Default Which is the most important for a trader - stop loss or take profit ?

      what is the most important for a trader use stop loss or take profit??
      Last edited by Aviz; 07-30-2018 at 09:55 AM.


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    3. #2
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      Using Stop loss And Take profit tools is the most important thing for the traders because :

      - Stop loss help traders in :

      1- Stopping their loses at small loss then they can compensate it with any other lots .
      2- It help in the controlling on the market by closing the loss trades and opening any other trades on the right directions .
      3- It help us in the trading with money management and low risk .
      4- it make us discipline with the rules because the trading without stop loss make us leave the trades for long time without any discipline .
      5- Stop loss is a protection to the account while the important news and the big movements .

      - Take profit help Traders in :

      1- Closing the opened trade on a specific point has strong resistance or support line before the price back again from it .
      2- It is very important for the traders who always not be in front of the chart because they can set it and close their computer .
      3- It is very important in collecting good profits while the trading with the scalping system which depend on profits 20 to 30 pips only .

      So stop loss and take profit both are very important to any trader and the trader that trade without these two tools always make his account under big risk while the important news or while the big movements that always happen suddenly on the market .


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    5. #3
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      Most beginners hate Stop Loss. Most of them just set a Target Profit, it turns out to be a wrong decision. It is true, without a stop loss, often the profit target is reached, but how long can it happen? When profit targets are not achieved, big losses will occur, possibly even resulting in bankruptcy or discharged capital or Margin Call.
      Forex trading is the art of installing Stop Loss and Take Profit. Stop loss is a safety from capital. When a trader is misdirected, a stop loss secures him from a greater loss, even spending all his capital.
      When amateurs are busy estimating Take Profit, professionals are busy determining the right stop loss. Stop loss is used not to accelerate losses but is used more to limit the amount of losses due to forex movements that often rise and fall suddenly and long to reverse direction, and before turning direction, your capital is up due to Margin Call (MC).
      Set stop loss and let the price move free ...


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      it seems to be of more importance to use stop loss at every point in time. the main reason for this is that since no one can correctly predict the direction of price at all times, it becomes very risky not to put a limit on the loss that might happen. if a trader accepts the reality of loss, then he would not joke with the idea of setting stop loss. some traders opt to set a pending hedge position where the stop loss should have been. this is still okay as it serves the same purpose. forex traders need to know that the first challenge he has is how to protect his trading funds. it is when the funds are safe that he could think of trading to profit.
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      Stop loss & take profit both are the part & parcel of risk management. So, I don't think that there should any comparison between these. If you ignore stop loss,You may face huge loss as well as can wipe out your account. Because it is not possible for many traders to sit fixed in front of the screen & monitor the trade. So, you will not always be there to manually shut down your trade when you are moving towards loss.

      On the other hand, if you don't use the take profit, you may not be able to control your greed. If you have no fixed target, you may not be able to identify the point where you should stop. In fact I faced this problem a lot. Many times it happened that I was in a great profit, but for not using take profit I sometimes could not stop my greed & ultimately my profit scenario turns into loss.

      So, in my opinion both are same important. It is not a wise decision to prioritize one over other.


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    11. #6
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      From my point of view I think that both are important but stop loss has the priority importance because without it you will be losing money but for take profit your open profit will decrease but that does not mean that you are losing money. Still this both option helps us many way in our everyday trading.

      Stop Loss Benefits
      • Stop loss will protect you from huge draw-down and it will limit your loss to a manageable level.
      • Using stop loss will make the trader more confident because the downside is limited.
      • Practicing stop loss also helps a trader to learn different key levels of the market which market respects and which market rejects.
      • Protecting capital can help a trader to survive long term in the market and gather experience.

      Take Profit Benefits
      • Using take profit helps the trader to grab their profit in an expected level.
      • Sometime price just hit the take profit and then come down but when price go close to take profit level and bounce that can be frustrating for the trader.
      • Take profit also helps the trader to get their profit even though they are not trading in front of their chart.
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    13. #7
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      Default

      What is the most important for a trader use stop loss or take profit???
      Both are essential for a Forex trader. You can anyhow ignore take profit level but you should never avoid stop loss. Stop loss is a must needed things for a Forex trader to survive in the Forex market. Stop loss and take profit strategy is a system by which a trade will close automatically. You don't need to stay online all the time.

      Stop loss is an essential elements for trading. It's essential for your account safety. I got stopped out many a times due to not using stop loss. Small loss is better than losing everything. Loss is a part of Forex trading business. So you should not worry about that issue. Calculated loss helps a trader to survive in this risky business. There are mainly two options. One is calculated loss and another is getting margin call. Now choice is yours.

      Take profit is also an important tools for trading. But it's not an essential things. You can avoid it if you are a long term trader. But if you want to ensure good profit then you should use it. Suppose, market made a huge jump in your absence and you set a huge TP according to your trading plan. Then your trade will close automatically with big profit. It's really a good sign for a trading. You should have a calculation in your trading. Calculated loss and profit indicates that your trading progress is accurate.


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    15. #8
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      What is the most important for a trader use stop loss or take profit ?Frankly speaking, both S/L and T/P are important risk management tools.But from experience ,in my own view, the use of S/L is more important because any loss incured is calculated and traders are not caught unaware. It is better this way than to allow stop out to wipe off your trading account. On the other hand ,the use of T/P is also important but your account can survive without it .Usually y only,long term traders may not include T/P,the have to wait until the market approach pivot region of change in trend.For daily traders,the use of T/P is important,because of unpredictable nature of market movement .Market may move or jump in their favor or against unless of course ,the trader is always there for close watch.


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    17. #9
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      The use of both stop loss and take profit are very important when it comes to forex trading market, but many traders will not think twice about to pin point that stop loss is the most important out of the two

      Let's take a look at some importance of Stop loss
      Stop loss have many ways traders uses it in the market, some traders use it to break even in the market to prevent their winning trade from turning to loss , while some trader use it directly to stop out their trade when in loss.
      The forex market doesn't have any emotions, that when ever our trade is in loss it will close it unless the account has reach it limit.
      But with stop loss order we get to avoid such situation and set our stop loss to preferable price.

      Take profit : there is no big deal about this, except traders uses it to close their trade on a winning ground.

      So in a nutshell stop loss is by far important than take profit.


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    19. #10
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      The stop loss is actually one of the trading tool that actually controls the amount of losses that a Forex trader can accumulate in their trading, Other parts or kinds of stop loss is trailing stop loss.

      Take profit on the other hand is a trading tool whose duty is solely to control the profits that a trader makes. It serves as a strong exit point where a traders trades exits irrespective of where the trader is.

      The stop loss and take profits have varying Forex functions and for that i can say that we need both of them for us to succeed in this business, None is more important than the other. The traders that usually refuse to make use of the stop loss and take profits in their Forex trades end up with Margin calls, Most especially the traders that do not use stop loss.


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